Apple is reassessing its strategy for Apple TV+ after reportedly spending around $20 billion on original content, much of which has gone unnoticed by viewers. The tech giant’s executive, Eddy Cue, has been consulting with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. They have indicated a desire for the streaming service to move away from its image as the industry’s largest spender.
This year alone, Apple invested a staggering $250 million in the miniseries “Masters of Air,” which subsequently failed to generate significant interest. Additionally, over $500 million has been allocated for films directed by notable filmmakers like Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite this extensive investment in content, Apple TV+ holds a mere 0.2% share of TV viewership in the United States, often receiving fewer views in a month than Netflix achieves in just 24 hours. The platform has also faced challenges in attracting and retaining subscribers.
While these issues have not raised immediate concerns for Apple, as streaming is not a primary component of its business model, the trend of unrestricted spending appears to be coming to an end. The platform’s hesitation to renew shows for third seasons supports this notion.
Notably, Apple TV+ remains the only major streaming service without an advertising tier. However, this may change following the hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier in the year.